If you're a private equity executive, you live for the deal. That's your lifeblood. We've been hearing about a lot of IPO deals in the works. But Bloomberg also reports that more private equity firms "are turning to bankruptcy courts" to make deals.

Private-equity firms are under pressure to invest the hundreds of billions raised mainly before credit crisis crashed the traditional LBO. "With corporate defaults forecast to reach a record as soon as March, they are making loans to the neediest borrowers and muscling in on turf traditionally dominated by so-called vulture investors." So the gamble here is to make pre-bankruptcy loans and then find a way to convert that into equity.   

For more:
- here's the article

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